Belgium’s Regulator FSMA Warns against New Cryptocurrency Platforms

Belgium’s Regulator FSMA Warns against New Cryptocurrency trading platforms. This time, the published blacklist includes 28 crypto trading platforms that advertise cryptocurrency trading to investors. In reality, they are fake companies that steal consumer’s funds.

The FSMA wrote on their page: “Cryptocurrencies are the hype of the year. Fraudsters are well aware of that and try to attract customers online through fake cryptocurrencies and huge profits. The only thing they actually do, however, is taking the customers’ money and disappear. It is as simple as that.”

Testimony of a Scammed Consumer

The FSMA frequently receives complaints from consumers who suspect fraud. To show the public how important it is to remain vigilant while investing in cryptocurrencies, the FSMA shared one of the complaints they have received:

Here is a small part of the letter they got: “I do not have the encryption keys, and so have no access to my investment. The receipt for my purchase that they forwarded to me has no VAT number or authorization number of a credit institution. Although they use phone numbers based in France, these are not connected to any physical address and no address for them is known in France. So why do they use phone numbers from the Paris region?Their website does not have any general terms and conditions.And most of all, they are not returning my money.”You can read the full complaint here at FSMA.be.

Judging from the story above, it sounds like a typical bucket shop broker which we are used to seeing in the Binary Options industry too. The only difference is that they are now targeting cryptocurrency customers.

Scam Platforms

We took a look at a few of the blacklisted websites to see exactly what’s going on there. What’s common is that they all seem to be hiding behind fake addresses and anyone could be behind these websites. There is no real information to be found about the founders and employees of the companies. What’s even more interesting is that in the terms and conditions of some of these brokers we found “bonus policies” which are typical binary options bonuses! Remember that these bonus schemes were banned a long time ago by regulators and all the legitimate firms stopped offering them. It now seems that these scam bonus schemes are back but this time in the crypto world. Example from e-cryptoney.com – one of the blacklisted scam platforms:

TERMS AND CONDITIONS1. EVERY BONUS REQUIRES A TRADING TURNOVER BEFORE ANY WITHDRAWAL IS MADE BY THE CLIENT. BY ACCEPTING

This particular scam platform requires 30x trading volume of your total deposit plus the bonus to release your funds. Another fact we can expose is that their terms and conditions include the expression “Option Trading” which is suspicious because they are advertising crypto trading and not Binary Options.

Image: One of the blacklisted Crypto Trading Platforms actually mentions Binary Options and CFD’s in their terms and conditions.

One of the brokers outright mentioned CFD’s and Binary Options in their terms and conditions which clearly exposes what we already concluded – getting clients attracted through cryptocurrencies but leading them to a bucket shop binary options broker.

Platforms Shutting Down

Going through the FSMA’s list of 28 blacklisted crypto trading platforms, most of them seem to have shut down after the warning was issued. But rest assured that many more will be popping up under new names and brands but the shady methods will be the same as explained above. That’s why it’s crucial to really do a thorough research and make sure the firm you are investing with is a regulated and trusted one.

Commenting Guidelines ThatSucks.com team encourages you to use our comments sections to share and discuss with other users, ask questions and express your mind. However, we do appreciate a high level of discussion; therefore, in order to maintain honest and gentle discourse, please keep the following criteria in mind when adding a comment:

Use Standard Writing Skills and Style. Mind your text and style.

Enrich and Respect the Conversion. We all want to hear what you have to say. Just don't take the freedom of speech away from us.

Avoid abusive language and personal attacks, directed either at the broker or the author.

Stay focused. Only post material that’s relevant.

Do Not SPAM or promote yourself illegally. Honesty speaks for itself. If you want our help, contact us.

Users caught spamming or abusing will be deleted from the site and prohibited from future registration at thatsucks.com and affiliates. We would also like to stress out that personal accusation against brokers or individuals without any proves or document to prove any illegal act might be ascribed as illegal act for itself and therefore attract legal measures. We recommend staying within the range of good taste and respectful language to avoid any unpleasantness.

ThatSucks.com will not take any responsibility for any loss or damage derived by accusations or negative comments made by random individuals. All Ip's are checked and marked for further inspection.

Please be noted that all information provided by Binary Options that Suck are based on our experience and do not mean to offend or accuse any broker with illegal matters. The words Suck, Scam, etc are based on the fact that these articles are written in a satirical and exaggerated form and therefore sometimes disconnected from reality. All information should be revised closely by readers and to be judged privately by each person.